5 things to watch on the economic calendar

1. U.S. employment report The U.S. Labor Department will release its August nonfarm payrolls report at 8:30AM ET (1230GMT) on Friday.The consensus forecast is that the data will show jobs growth of 180,000 this month, following an increase of 209,000 in July, with the unemployment rate forecast to hold steady at 4.3%.Most of the focus will likely be on average hourly earnings figures, which are expected to rise 0.2% after gaining 0.3% a month earlier.

2. U.S. revised 2nd quarter GDP The U.S. Commerce Department is to release revised figures on second-quarter economic growth at 8:30AM ET (1230GMT) Wednesday. The data is expected to show that the economy grew at a 2.7% annual rate in the April-June quarter, upwardly revised from a preliminary estimate of 2.6% and improving sharply from growth of 1.4% in the first quarter. This week's calendar also features U.S. data on personal income and spending, which includes the personal consumption expenditures inflation data, the Fed's preferred metric for inflation. Reports on ISM manufacturing sector activity, CB consumer confidence, ADP private sector payrolls and monthly auto sales figures are also on the agenda. Markets remain skeptical the Fed will raise rates a third time this year due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet by September.

3. Euro zone flash inflation figures The euro zone will publish flash inflation figures for August at 0900GMT (5:00AM ET) Thursday. The consensus forecast is that the report will show consumer prices rose 1.4% this month, after climbing 1.3% in July, remaining short of the ECB's target of just below 2%.Germany, France, Italy and Spain will produce their own CPI reports throughout the week.

4. UK manufacturing PMI The UK will release a reading on August manufacturing sector activity at 0830GMT (4:30AM ET) on Friday, amid expectations for a small dip to 55.0 from 55.1 a month earlier.
Some BOE policymakers have started to call for higher interest rates in the months ahead due to the recent surge in inflation, which was caused largely by the plunge in sterling following last year's Brexit vote. But a recent run of weak data and deep uncertainty about the impact of Brexit on the economy have cooled the speculation that the BOE is poised to start removing its crisis-level stimulus.

5. Chinese manufacturing data The China Federation of Logistics and Purchasing is to release data on August manufacturing sector activity at 0100GMT on Thursday (9:00PM ET Wednesday), amid expectations for a modest down tick to 51.3 from a reading of 51.4 in July.China's economy grew a faster-than-expected 6.9% in the second quarter, matching the first quarter's pace, supported by solid exports, industrial production and consumption.

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